Not For Investors Only: Z-Man on Triangle Petroleum in the Bakken, North Dakota, USA

Updates

September 24, 2016: Houston-based private equity firm White Deer has acquired RockPile; RockPile expands - acquired American Well Service out of Kenmare, ND, one week earlier

June 22, 2014: Motley Fool has a short post on Triangle Petroleum.

May 19, 2014: four-part series on TPLM. This is a link to one part in a series on TPLM. This particular essay looks at the wholly owned subsidiaries of Triangle Petroleum: TUSA (E&P); RockPile (services, fracking); and Caliber Midstream (gathering, transporting, and processing).

May 15, 2014: acquires 46,100 acres for $120 million, about $2,600/acre

April 17, 2014: annual press release; market cap -- $765 million. 

April 15, 2014: Filloon on TPLM; share price could rise 43% this year.

February 16, 2014: Triangle Petroleum is one of five Bakken operators Filloon is bullish on.  

January 17, 2014: SeekingAlpha stories on TPLM -

• buying opportunity -- Stephen Simpson, CFA 
• one of four picks in the Bakken -- Michael Filloon

December 11, 2013: random data points from TPLM's December corporate presentation --

• focused on Williston Basin
• 94,000 net acres; 7,400+ boepd; proved reserves of 32.5 million boe
• 45,000 net acres in core areas of McKenzie / Williams counties (66% operated)
• 3 full-time operated rigs
• has its own frack services -- Rock Pile; provides services of 3rd parties
• its own pipeline -- Caliber Midstream; in JV with First Reserve Energy Infrastructure Fudn
• production/reserves have increased 390%/293% y-o-y
• 59% increased production 2Q14 to 3Q14
• $275 million reserve-based lending facility with $230 million in liquidity
• Plug and perf completions (McKenzie County, 100% ceramic; Williams County, 25% ceramic)
• spud to total depth: 23 days avg 3Q14; 28 days avg 3Q13
• targeting $9.5 million AFE (let's call it $10 million)
• Caliber reduces pad equipment on site
• 3Q14: first full quarter operating two 24-hour spreads
• backlog of 21 wells, including 11 for third party operatiosn
• increasing scale by adding workover units and additional cased wireline units to basket of product offerings
• Caliber Midstream: NG processing facility to be operational in early 2014; located at four corners (150-101:150-100:149-100:149:101)

September 18, 2013: update on TPLM's most recent quarter -- Mike Filloon.

September 10, 2013: earnings beat; huge story; shares up 4%.

June 13, 2013: Mike Filloon's exuberant take on TPLM's most recent quarter. 

June 12, 2013: the downspacing revolution in the Bakken; Triangle Petroleum notes that 160-acre spacing does not reveal any "communication." Huge.

March 8, 2013: Triangle Petroleum should have a great 2013 -- SeekingAlpha.

October 1, 2012: Triangle Petroleum forms pipeline venture with First Reserve; pipeline will ensure Triangle Petroleum oil profitable at $45/bbl;

June 12, 2012: Motley Fool has a positive impression of Triangle Petroleum. Additional comments provided.

June 11, 2012: Triangle provides operational update, and 1Q13 results.

Triangle Wells by Oil Field

Ellsworth: near the bull's eye of the Bakken

• 26911, drl, Hagen 149-100-9-4-8H, Ellsworth, 
• 26910, drl, Hagen 149-100-9-4-7H, Ellsworth, 
• 26909, 328, Hagen 149-100-9-4-6H, Ellsworth, t6/14; cum 9K 5/14;
• 26908, loc, Hagen 149-100-9-4-5H, Ellsworth,   
• 21632, 1,686, 3,230 max; 2,265 - 7-day; Triangle, Larson 149-100-9-4-1H, Ellsworth oil field; 31 frac stages; 100% ceramic; t5/12; cum 115K 5/15;
• 22096, 935, Triangle, Larson 149-100-9-4-2TFH, Ellsworth, t10/12; cum 52K 11/13;
• 22097, 472, Triangle, Larson 149-100-9-4-3H, Ellsworth, t10/12; cum 75K 11/13;
• 22098, dry, Triangle, Larson 149-100-9-4-4H, Ellsworth; file does not provide any explanation;

Spring Creek

• 26725, drl, Triangle, Hovde 150-100-6-7-1H, Spring Creek, cum 49K as of 5/14;

Wildcats

• 19738, 378, Triangle, Frederick James 149-101-3-10-1H, Antelope Creek, t7/12; cum 91k 11/13;
• 22296, 463, Triangle, Larsen 157-101-28-3-1H, Otter, t4/12; cum 79K 11/13;
• 22297, 207, Triangle, Larsen 157-101-21-16-1H, Otter, t113; cum 48K 11/13;

Pronghorn: McKenzie County, north central

• 25153, 297, Triangle, Dwyer 150-101-21-16-2H, Pronghorn, t8/13; cum 71K 5/14;
• 25154, 395, Triangle, Dwyer 150-101-21-16-3H, Pronghorn, t8/13; cum 81K 5/14;
• 25155, loc, Triangle, Dwyer 150-101-21-16-4H, Pronghorn
• 21452, 1,045; 3,023 max; 1,429 - 7-day; Dwyer 150-101-21-16-1H, Pronghorn oil field; 31 frac stages; 25% ceramic; t5/12; cum 94K 5/14;

Rawson: McKenzie County, north central

• 27230, 898, Triangle, Rowe 150-101-1-12-6H, Rawson, t6/14; cum 3K 5/14;
• 27229, 734, Triangle, Rowe 150-101-1-12-5H, Rawson, t6/14; cum 5K 5/14;
• 26231, drl, Triangle, Dwyer 150-101-35-26-3H, Rawson, cum 36K as of 5/14;
• 26230, 348, Triangle, Dwyer 150-101-35-26-2H, Rawson, t2/14; cum 50K 5/14;
• 25718, 633, Triangle, McCabe 150-101-24-13-2H, Rawson, t11/13; cum 82K 5/14;
• 25717, 622, Triangle, McCabe 150-101-24-13-1H, Rawson, t11/13; cum 88K 5/14;
• 23617, 634, Triangle, Rowe 150-101-1-12-1H, Rawson, t6/13; cum 93K 5/14;
• 23618, drl, Triangle, Rowe 150-101-1-12-2H, Rawson,
• 23619, 355, Triangle, Rowe 150-101-1-12-3H, Rawon, t6/13; cum 113K 5/14;
• 23620, drl, Triangle, Rowe 150-101-1-12-4H, Rawson,
• 23426, loc, Triangle, Sanders 150-101-3-10-1H, Rawson,
• 24276, loc, Triangle, Triangle 150-101-36-25-8H, Rawson,
• 24277, drl, Triangle, Triangle 150-101-36-25-7H, Rawson,
• 24278, 436, Triangle, Triangle 150-101-36-25-6H, Rawson, t8/13; cum 93K 5/14;
• 24279, 478, Triangle, Triangle 15-101-36-25-5H, Rawson, t8/13; cum 79K 5/14;
• 24546, 485 Triangle, Dwyer 150-101-35-26-1H, Rawson, t5/13; cum 75K 5/14;
  
• 21825, 984, Triangle, Gullickson Trust 150-101-36-25-1H, t6/12; cum 61K 2/13;
• 21826, loc, Triangle, Gullickson Trust 150-101-36-25-2H,
• 21827, 1,173, Triangle, Gullickson Trust 150-101-36-25-3H, t6/12; cum 63K 2/13;
• 21828, loc, Triangle, Gullickson Trust 150-101-36-25-4H,

Antelope Creek: McKenzie County, north central

• 25612, 329, Triangle, Frederick James 149-101-3-10-4TFH, t1/14; cum 33K 5/14;
• 25611, 345, Triangle, Frederick James 149-101-3-10-3H, t1/14; cum 62K 5/14;
• 25610, 189, Triangle, Frederick James 149-101-3-10-2TFH, t12/13; cum 22K 5/14;
• 23464, 428, Triangle, Dwyer 149-101-2-11-1H, Antelope Creek; t5/13; cum 72K 5/14;
  
• 24026, loc, Triangle, Dwyer 149-101-2-11-4H, Antelope Creek,
  
• 24027, 242, Triangle, Dwyer 149-101-2-11-3H, Antelope Creek, t4/13; cum 70K 5/14;
  
• 24028, loc, Triangle,  Dwyer 149-101-2-11-2H, Antelope Creek,
  
• 24664, 503, Triangle, Dwyer 149-101-2-11-5H, Antelope Creek, t7/13; cum 46K 11/13;
  
• 24665, 454, Triangle, Dwyer 149-101-2-11-6H, Antelope Creek, t7/13; cum 41K 11/13;
  
• 23432, 178, Triangle, Steen 149-101-13-24-1H, Antelope Creek, t1/13; cum 66K 5/14;
  
• 23812, 519, Triangle, Steen 149-101-13-24-3H, Antelope Creek, t1/13; cum 98K 5/14;
  
• 23813, 510, Triangle, Steen 149-101-13-24-2H, Antelope Creek, t1/14; cum 39K 5/14;
  
• 23814, 373, Triangle, Steen 149-101-13-24-4H, Antelope Creek, t2/14; cum 36K 5/14;
  
• 22625, 638, Triangle, Triangle 149-101-1-12-1H, t1/13; cum 92K 5/14;
• 22626, conf, Triangle, Triangle 149-101-1-12-2H, Antelope Creek;
• 22627, 551, Triangle, Triangle 149-101-1-12-3h, Antelope Creek;
• 22628, conf, Triangle, Triangle 149-101-1-12-4H, Antelope Creek;

Rosebud: Williams County, southeast corner

• 26494, drl, Triangle, State 154-102-25-36-5TFH, Rosebud, cum 22K as of 5/14;
• 23159, conf, Triangle, State 154-102-25-36-2H, Rosebud,
• 23160, 545, Triangle, State 154-102-25-36-3H, Rosebud,
• 23161, conf, Triangle, State 154-102-25-36-4H, Rosebud,
  
• 22558, 334, Triangle State 154-102-25-36-1H, Rosebud, t9/12; cum 56K 2/13;

Buffalo Wallow: McKenzie County

• 26695, 550, Triangle, Gustafson 148-100-5-8-3H, Buffalo Wallow,  t5/14; cum 16K 5/14;
• 26694, 552, Triangle, Gustafson 148-100-5-8-2H, Buffalo Wallow, t5/14; cum 16K 5/14;
• 25889, 385, Triangle, Anderson 148-100-7-6-1H, Buffalo Wallow, t10/13; cum 23K 11/13; 
• 23114, 626, Triangle, Gustafson 148-100-5-8-1H, Buffalo Wallow, t11/12; cum 66K 11/13;
• 25047, PNC, Triangle, Anderson 148-100-6-7-1H, Buffalo Wallow,

Ragged Butte:

• 23774, conf, Triangle, Skedsvold Trust 151-101-32-29-4H, Ragged Butte,
• 23775, 602, Triangle, Skedsvold Trust 151-101-32-29-3H, Ragged Butte, t3/13; cum 92K 5/14;
• 23776, conf, Triangle, Skedsvold Trust 151-101-32-29-2H, Ragged Butte,
• 23777, 509, Triangle, Skedsvold Trust 151-101-32-29-1H, Ragged Butte, t4/13; cum 92K 5/14;

Otter:

• 24877, loc, Triangle, Larsen 157-101-28-33-2H, Otter,
• 24878, loc, Triangle, Larsen 157-101-28-33-3H, Otter,
• 24879, loc, Triangle, Larsen 157-101-28-33-4H, Otter,
• 24880, loc, Triangle, Larsen 157-101-21-16-2H, Otter,
• 24881, loc, Triangle, Larsen 157-101-21-16-3H, Otter,
• 24882, loc, Triangle, Larsen 157-101-21-16-4H, Otter,

Elk:

• 27379, drl, Triangle, Monson 152-102-35-26-2H, Elk, 
• 27378, 852, Triangle, Monson 152-102-35-26-3H, Elk, t6/14; cum --
• 27377, 487, Triangle, Monson 152-102-35-26-4H, Elk, t6/14; cum --
• 26723, drl, Triangle, State 152-102-36-25-5H, Elk, cum 29K as of 5/14;
• 26722, drl --> conf (I remember Teegue telling me they do not do this), Triangle, State 152-102-36-25-6H, Elk, huge production;   
• 25269, 497, Triangle, State 152-102-36-25-2H, Elk, t10/13; cum 76K 5/14;
• 23975, loc, Triangle, Monson 152-102-35-26-1H, Elk,
• 25036, 428, Triangle, State 152-102-36-25-1H, Elk, t10/13; cum 79K 5/14;
• 25269, 497, Triangle,  State 152-102-36-25-2H, Elk, t10/13; cum 76K 5/14;

Strandahl:

• 24885, loc, Triangle, Kittleson 157-103-32-29-1H, Strandahl
• 24886, loc, Triangle, Kittleson 157-103-32-29-2H, Strandahl, 

Bull Butte

• 22913, PNC, Triangle, Sveet 156-104-3-2-1H, Bull Butte,  

Sandrocks

• 26321, 580, Triangle, Sanders 150-100-9-10-2H, t5/14; cum 58K 5/14;
• 26075, 476, Triangle, Sanders 150-100-9-10-1H, t5/14; cu 55K 5/14;

Timber Creek

• 26735, drl, Triangle, Wisness 150-100-23-14-5H, cum 30K as of 5/14;
• 25733, PNC, Triangle, Arnegard 150-100-14-23-4H,
• 25522, 587, Triangle, Arnegard 150-100-23-14-2H, t10/13; cum 52K 11/13;
• 25521, 611, Triangle, Arnegard 150-100-23-14-1H, t10/13; cum 53K 11/13;

Williston

• 25459, 784, Triangle, Little Muddy 13H, t10/13; cum 49K 11/13;
• 25458, 631, Triangle, Little Muddy 11H, t10/13; cum 44K 11/13;

Original Post

A reader sent me this link; nice update.

Rockpile, its in-house frac spread, is training (many former SLB guys) with new equipment that was delivered in March. Expect TPLM to transition to using Rockpile for completions in 2H12 and to bid for other Basin business to stay busy in between company jobs. We should see nice EBITDA margins on non company wells, either on away business or on TPLM non-operated wells. Right now the completion side of a well is probably $5 mm of the well cost in the Williston Basin on average so this will represent a meaningful add to the TPLM story that I can't see as being reflected in stock valuation. Rockpile should be up and running in July, and can do up to four wells a month once running smoothly, so a big revenue and EBITDA generator and a nice savings for them when it comes to the operated program.

Huge story for those accumulating Triangle.

But this is not just for investors. Understanding Triangle helps one understand how the Bakken is being developed. 

With this posting, dated April 13, 2012, this is where updates for Triangle Petroleum will be posted.

Marker:

• July 27, 2014: market cap -- $992 million; EV: $1.31 billion
• April 13, 2012: market cap -- $268.83 million.